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3 years ago

What are the advantages a market economy offers producers?

1 answer:

3 0

It gives the producers an opportunity to grow and develop while implementing any innovation that they believe will pay off since it's based on supply and demand. Things are profit motivated which makes it easier for produced to earn money as long as they provide what the people want.

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Pods changed from a sole proprietorship to a corporation. what would be a major reason for making this ownership change?

Gennadij [26K]

The major reason for making this type of ownership change is liability protection. A sole proprietor is personally responsible for all the debts his company generates, he can lose everything he has if he generate a big debt. In corporations, there is corporate liability shield which protects the owners of the company from loosing their personal assets as a result of business liability.

3 0

3 years ago

Knottworth Gedding Consulting leased machinery from Red Inc. on July 1, 2021. The lease was recorded as a finance lease. The pre

Kobotan [32]

Answer:

The answer is: Knottworth Gedding should report $1,725,000 as interest expense in its 12/31/2021 income statement

Explanation:

The formula for calculating the amount of interest expense is:

interest expense = discount rate x (present value - yearly payment) x time

Discount rate = 10%
Present value = $40,500,000
Yearly payment = $6,000,000
Time = 6 months / 12 months = 0.5

interest expense = 10% x ($40,500,000 - $6,000,000) x 0.5 = $1,725,000

6 0

3 years ago

An increase in revenues increases net income, and net income increases stockholders’ equity. True or false?.

Gwar [14]

Answer:

false

Explanation:

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2 years ago

You can either go to a movie or go bowling. If you choose the movie,

yulyashka [42]

Answer: The Answer is D.) your opportunity cost is the time and experience of bowling

Explanation: Why it is NOT B or C is because,

Rationale: Second best. Opportunity cost is the experience you might have had if you had chosen your next-best option. In this example, the opportunity cost is the experience of the activity you did not choose – bowling.

4 0

3 years ago

Read 2 more answers

You won a lottery! To collect your winnings you will be paid annual amounts of $11,300 for each of the next 21 years. The approp

Stella [2.4K]

Answer:

Difference = $9773.02

Explanation:

An annuity is a series of cash flows or payments that are of constant amount, occur after equal intervals of time and are for a limited and defined period of time. Thus, the winnings from lottery are an annuity as they pay a fixed amount $11300 every year for 21 years.

The annuity can be of two types namely ordinary annuity and annuity due. In ordinary annuity the cash flows occur at the end of the period and in annuity due, the cash flows occur at the beginning of the period. When we calculate the present value of these cash flows, it is understood that the present value of annuity due is greater than the present value of ordinary annuity.

The formulas for the present value of both ordinary annuity and annuity due are attached.

In the formula, R is the annuity payment or cash flow and i is the relevant interest rate and n is the number of years or periods.

PV of annuity ordinary = 11300 * [ (1 - (1+0.1)^-21) / 0.1 ]

PV of ordinary annuity = $97730.24548 rounded off to $97730.25

PV of annuity due = 11300 * [ (1 - (1+0.1)^-21) / 0.1 ] * (1+0.1)

PV of annuity due = $107503.27

Difference = 107503.27 - 97730.25

Difference = $9773.02

5 0

4 years ago